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Cal-Maine Foods Inc  (NAS:CALM) E10: $2.22 (As of Aug. 2017)

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Cal-Maine Foods Inc's adjusted earnings per share data for the three months ended in Aug. 2017 was $-0.330. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.22 for the trailing ten years ended in Aug. 2017.

As of today, Cal-Maine Foods Inc's current stock price is $46.00. Cal-Maine Foods Inc's E10 for the quarter that ended in Aug. 2017 was $2.22. Cal-Maine Foods Inc's Shiller PE Ratio of today is 20.72.

During the past 13 years, the highest Shiller PE Ratio of Cal-Maine Foods Inc was 54.92. The lowest was 13.61. And the median was 19.15.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Cal-Maine Foods Inc Annual Data

May08 May09 May10 May11 May12 May13 May14 May15 May16 May17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.35 1.43 1.79 2.48 2.28

Cal-Maine Foods Inc Quarterly Data

Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.43 2.36 2.35 2.28 2.22

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today’s price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

For example, Cal-Maine Foods Inc's adjusted earnings per share data for the three months ended in Aug. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Aug. 2017 (Change)*Current CPI (Aug. 2017)
=-0.33/245.519*245.519
=-0.330

Current CPI (Aug. 2017) = 245.519.

Cal-Maine Foods Inc Quarterly Data

per share eps CPI Adj_EPS
200711 0.845 210.177 0.987
200802 1.205 211.693 1.398
200805 0.770 216.632 0.873
200808 0.235 219.086 0.263
200811 0.570 212.425 0.659
200902 0.645 212.193 0.746
200905 0.215 213.856 0.247
200908 -0.080 215.834 -0.091
200911 0.335 216.330 0.380
201002 0.725 216.741 0.821
201005 0.440 218.178 0.495
201008 0.100 218.312 0.112
201011 0.315 218.803 0.353
201102 0.700 221.309 0.777
201105 0.150 225.964 0.163
201108 0.065 226.545 0.070
201111 0.485 226.230 0.526
201202 0.545 227.663 0.588
201205 0.780 229.815 0.833
201208 0.195 230.379 0.208
201211 0.300 230.221 0.320
201302 0.635 232.166 0.672
201305 -0.080 232.945 -0.084
201308 0.180 233.877 0.189
201311 0.540 233.069 0.569
201402 0.890 234.781 0.931
201405 0.650 237.900 0.671
201408 0.570 237.852 0.588
201411 0.760 236.151 0.790
201502 1.050 234.722 1.098
201505 0.950 237.805 0.981
201508 2.950 238.316 3.039
201511 2.260 237.336 2.338
201602 1.330 237.111 1.377
201605 -0.010 240.229 -0.010
201608 -0.640 240.849 -0.652
201611 -0.480 241.353 -0.488
201702 0.090 243.603 0.091
201705 -0.510 244.733 -0.512
201708 -0.330 245.519 -0.330

Add all the adjusted EPS together and divide 10 will get our e10.


Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Cal-Maine Foods Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=46.00/2.22
=20.72

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

During the past 13 years, the highest Shiller P/E Ratio of Cal-Maine Foods Inc was 54.92. The lowest was 13.61. And the median was 19.15.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


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